TNT growth in the Gulf in 2001
At a time when transport operators are complaining about overcapacity, lower rates and a drop in volumes, TNT recorded a 15% growth in revenue for the Gulf region in 2001 with a similar figure predicted for this year.
Mark Pell, TNT’s Gulf general manager, predicts a 17% increase in revenue on consignments handled in the UAE this year – the regional hub – following 19% growth last year.
“We’ve expanded quickly to an enviable position of being proactive in the market, ” says Pell. Even Bahrain and Kuwait, formerly “tough markets”, will grow by 12% and 10% respectively this year, he believes.
Kuwait’s diminishing “toughness” may well have something to do with the fact that UPS has pulled out of that market.
“Since the Gulf War, we have acquired a number of major clients in Kuwait, particularly in the shipping and oil industries, including United Arab Shipping Company, ” says Pell.
A major catalyst for TNT’s success in the Gulf was the launch of Economy Express, first introduced into Bahrain two years ago, designed for heavier-weight freight, documents and parcels alike. The service, which records monthly revenue increases of 25%, promises next-day delivery within the region and three to four days anywhere in the world – via a network serving 41 countries.
“There is an alternative to Economy Express – inefficient third-party air freight. Customers need to have control of their consignments, ” says Pell.
Saudi Arabia is a major player for TNT, tending to be a market with heavier consignments, subsequently the service has been very popular.
TNT serves the Gulf using its own trucks, but uses commercial air lift, feeding into Europe.
The growth in sporting activities hosted in the Middle East these days has also boosted the integrator’s role in the region, including being appointed official courier the for Dubai Rugby 7s and last month’s Dubai Cup. this business has become so important in recent years that TNT in the Gulf now allocates 35% of its marketing budget to sport.
“We had to distribute invitations all over the world, as well as transporting quarantine documents and jockeys’ silks – you’re talking a major logistical exercise. The Dubai Cup, the richest horse race in the world and as soon as the first horse is past the winning post, they will start preparing for next year’s race, ” says Pell.
Posted: 15/04/2002
IFW
